MINORITY- AND WOMEN-OWNED BUSINESSES AT RISK:
IMPACT OF COVID-19 ON NEW YORK CITY FIRM
COVID-19 has exacerbated persistent and deep inequalities impacting women and people of color. In fact, a recent national analysis of minority- and women-owned businesses estimated that between February and April 2020, 41 percent of Black-owned businesses, 32 percent of Latino-owned businesses, and 26 percent of Asian American-owned businesses closed either temporarily or permanently, while 17 percent of white-owned businesses closed.
In New York City, the numbers are even more discouraging. According to a survey of more than 500 City-certified M/WBEs conducted by the New York City Comptroller's Office in June 2020, 85 percent of M/WBEs believe they cannot survive for six more months. The results below highlight structural inequities and the need for urgent action.
THE OVERWHELMING MAJORITY OF M/WBEs DID NOT RECEIVE PRIVATE SECTOR RELIEF
M/WBE's WERE NOT ABLE TO ACCESS COVID-RELATED CONTRACTS WITH THE CITY
M/WBE's FACE BARRIERS TO FEDERAL, CITY, AND PRIVATE SECTOR RELIEF
65% of M/WBE's that shared information about their services said they were ready and able to contract with the City on COVID-19 response efforts.
However, out of 500 M/WBE's surveyed, only 62 competed for a City contract during COVID-19 due to onerous restrictions and non-responsiveness from the City.
Out of those 62, only 10 received COVID-related contracts.
50% OF M/WBE respondents have been in business for more than 10 years.
34% AFRICAN AMERICAN
19% ASIAN AMERICAN
2% EMERGING OR LOCAL
48% PROFESSIONAL SERVICES
15% STANDARD SERVICES
25% of M/WBE's did not apply for federal or City funding for the following reasons:
1. Restrictive application criteria or use of funds
2. M/WBE's did not want to be subject to debt or high interest rates
3. Lack of outreach and awareness
4. Funds were exhausted before they applied
20% of M/WBE's applied for federal or City funding but were not approved for the following reasons:
1. Low credit score
2. They did not meet application criteria
3. They were still waiting approval
4. They were rejected and were not told why they were ineligible
5. Funds were exhausted before their application was processed
Did M/WBE's get relief from the City of New York?
1. Only 40 M/WBE's applied for the New York City Business Continuity Loan. Of the 40, only 6 were approved.
2. Only 48 M/WBE's applied for the New York City Employee Retention Grant. Of the 48, only 15 were approved.